Abstract: Retail activities are highly location sensitive and fuel retail industry is no exclusion. The unveiling of the deregulation policy has caused profit margins to reduce due to the growth of new entrants whiles operational margins have increased; causing a drastic decrease in fuel station sales and net income. However, the acquisition and building of fuel stations is more rampant than ever. This paper investigates the factors that influence sales performance and siting for a fuel station project. The mixed method and explanatory research design was adopted, focusing on selected fuel stations. The outcomes suggest that out of the three products tested, location is the key variable that receives the most positive influence on sales volumes. Service capacity does not induce a positive influence on sales volumes but rather, increases overhead cost. Other variables that influence sales volumes were identified as promotion, brand, pump price, service quality, opening hours, local authority decision and size of the place. The results further indicate that, the elements that significantly influence fuel station siting are traffic volume, competition on the road, land use in the region, the nature of the road as well as environmental and legislative demands. A consistent model to forecast retail sales volumes of fuel outlets is recommended, which would be useful in retail fuel station appraisals, feasibility studies and investment analysis by project managers and other professionals.
Keywords: Location, Factors, Sales, Performance, Fuel Station.
Title: ASSESSING FACTORS INFLUENCING SALES PERFORMANCE AND SITING OF A FUEL STATION PROJECT: STUDY OF SPINTEX ROAD, ACCRA-GHANA
Author: Dr. Boison David King, Asamoah Harriet Yaa, Addison Linda, Dr. Esther Asiedu
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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